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This manuscript reports a stochastic dynamical scenario whose associated stationary probability density function is exactly a previously proposed one to adjust high-frequency traded volume distributions. This dynamical conjecture,…

Statistical Mechanics · Physics 2009-11-11 Silvio M. Duarte Queiros

We introduce a prototype model in an attempt to capture some aspects of market dynamics simulating a trading mechanism. The model description starts with a discrete-space, continuous-time Markov process describing arrival and movement of…

Trading and Market Microstructure · Quantitative Finance 2013-04-04 N. Vvedenskaya , Y. Suhov , V. Belitsky

Simulators driven by deep learning are gaining popularity as a tool for efficiently emulating accurate but expensive numerical simulators. Successful applications of such neural simulators can be found in the domains of physics, chemistry,…

Quantitative Methods · Quantitative Biology 2022-11-04 Koen Minartz , Yoeri Poels , Vlado Menkovski

There are few known universality classes of absorbing phase transitions in one dimension and most models fall in the well-known directed percolation (DP) class. Synchronization is a transition to an absorbing state and this transition is…

Statistical Mechanics · Physics 2024-11-25 Divya D. Joshi , Prashant M. Gade

We study charge fluctuations of a family of stochastic charged cellular automata away from the deterministic single-file limit and obtain the exact typical charge probability distributions, known to be anomalous, using hydrodynamics. The…

Statistical Mechanics · Physics 2025-06-06 Takato Yoshimura , Žiga Krajnik

In complex financial systems, the sector structure and volatility clustering are respectively important features of the spatial and temporal correlations. However, the microscopic generation mechanism of the sector structure is not yet…

General Finance · Quantitative Finance 2015-04-09 Jun-Jie Chen , Lei Tan , Bo Zheng

Cellular automata (CA) play an important role in the development of computationally efficient microscopic traffic models and recently have gained considerable importance as a mean of optimising traffic control strategies. However, real-time…

Emerging Technologies · Computer Science 2013-11-25 Bartłomiej Płaczek

Cellular automata are often used to model systems in physics, social sciences, biology that are inherently asynchronous. Over the past 20 years, studies have demonstrated that the behavior of cellular automata drastically changed under…

Discrete Mathematics · Computer Science 2007-06-19 Damien Regnault , Nicolas Schabanel , Éric Thierry

We devise an optimal allocation strategy for the execution of a predefined number of stocks in a given time frame using the technique of discrete-time Stochastic Control Theory for a defined market model. This market structure allows an…

Mathematical Finance · Quantitative Finance 2019-09-25 Akshay Bansal , Diganta Mukherjee

The calcium transport in biological systems is modelled as a reaction-diffusion process. Nonlinear calcium waves are then simulated using a stochastic cellular automaton whose rules are derived from the corresponding coupled partial…

Pattern Formation and Solitons · Physics 2010-03-30 Xin-She Yang

We discuss a simple, exactly solvable model of stochastic stock dynamics that incorporates regime switching between healthy and distressed regimes. Using this model, which is analytically tractable, we discuss a way of extracting expected…

Pricing of Securities · Quantitative Finance 2019-10-30 Zura Kakushadze

Many diffusion processes in nature and society were found to be anomalous, in the sense of being fundamentally different from conventional Brownian motion. An important example is the migration of biological cells, which exhibits…

Statistical Mechanics · Physics 2018-02-13 J. M. Nava-Sedeno , H. Hatzikirou , R. Klages , A. Deutsch

Discrete dynamical systems can exhibit complex behaviour from the iterative application of straightforward local rules. A famous example are cellular automata whose global dynamics are notoriously challenging to analyze. To address this, we…

Disordered Systems and Neural Networks · Physics 2024-07-22 Freya Behrens , Barbora Hudcová , Lenka Zdeborová

Dynamic portfolio optimization is the process of sequentially allocating wealth to a collection of assets in some consecutive trading periods, based on investors' return-risk profile. Automating this process with machine learning remains a…

Machine Learning · Computer Science 2019-01-28 Pengqian Yu , Joon Sern Lee , Ilya Kulyatin , Zekun Shi , Sakyasingha Dasgupta

Cellular automata are a discrete dynamical system which models massively parallel computation. Much attention is devoted to computations with small time complexity for which the parallelism may provide further possibilities. In this paper,…

Formal Languages and Automata Theory · Computer Science 2012-08-15 Anaël Grandjean , Gaétan Richard , Véronique Terrier

Financial markets change their behaviours abruptly. The mean, variance and correlation patterns of stocks can vary dramatically, triggered by fundamental changes in macroeconomic variables, policies or regulations. A trader needs to adapt…

Statistical Finance · Quantitative Finance 2018-12-07 Sonam Srivastava , Ritabratta Bhattacharya

The mathematical model of a linear system with the short memory about own stochastic behavior is proposed. It is assumed that the system is under a continual influence of independent stochastic impulses. In a short memory approximation the…

Probability · Mathematics 2008-12-10 D. N. Zhabin

We present an algorithm for the stochastic simulation of gene expression and heterogeneous population dynamics. The algorithm combines an exact method to simulate molecular-level fluctuations in single cells and a constant-number Monte…

Computational Physics · Physics 2016-08-24 Daniel A. Charlebois , Jukka Intosalmi , Dawn Fraser , Mads Kaern

We describe a new algorithm for simulating complex Markoff-processes. We have used a reaction-cell method in order to simulate arbitrary reactions. It can be used for any kind of RDS on arbitrary topologies, including fractal dimensions or…

chem-ph · Physics 2009-10-28 Thomas Fricke , Dietmar Wendt

A model for 1D traffic flow is developed, which is discrete in space and time. Like the cellular automaton model by Nagel and Schreckenberg [J. Phys. I France 2, 2221 (1992)], it is simple, fast, and can describe stop-and-go traffic. Due to…

Statistical Mechanics · Physics 2009-10-31 Dirk Helbing , Michael Schreckenberg